HOA Fees are Skyrocketing
If you're buying a condo in San Francisco, HOA fees are part of the conversation. Before you write off a property because of a monthly fee, here's what's worth understanding:
What an HOA Actually Covers
Homeowners associations manage the shared costs of a building — maintenance, insurance, reserves for major repairs, landscaping, common areas. In a condo building, that means someone else is coordinating the roof repair, the elevator maintenance, and the exterior upkeep. For a lot of buyers, especially those coming from renting, that's not a burden — it's a feature.
Here's the reality: homeownership comes with costs no matter what. If you own a single-family home, you're budgeting a few hundred dollars a month for maintenance and repairs on your own. A managed HOA just makes that cost predictable and shared. You're not eliminating the expense — you're pooling it.
Why Fees Are Rising — And What's Being Done About It
HOA fees across California have been climbing, driven by rising insurance premiums, energy costs, and deferred maintenance catching up with older buildings. Under current California law, dues can increase by up to 20% per year without a member vote. A bill currently moving through the state legislature — SB 1007 — would cap annual increases at 8% unless members vote to exceed that threshold.
The bill has support from consumer and realtor groups, but it's not without pushback. Some HOA board members and lawmakers worry that capping increases too aggressively could leave associations underfunded — making it harder to cover major projects and potentially making lenders more cautious about approving mortgages in those buildings. It's a real tension, and one worth watching.
What to Look for as a Buyer
A high HOA fee isn't automatically a dealbreaker. Here's how to think about it:
What does it cover? Some fees include water, trash, exterior insurance, and building reserves. Others are bare bones. Understand what's in the number before reacting to it.
Are the reserves healthy? A building with well-funded reserves is less likely to hit owners with a surprise special assessment for a big repair. Ask for the reserve study.
Is the fee stable or has it been jumping? A history of large annual increases is worth scrutinizing. A steady, well-managed fee is a green flag.
Does it pencil out vs. a house? If the alternative is a single-family home where you're self-managing all maintenance costs, a $600/month HOA fee on a fully maintained building may actually be the more predictable option.
The Bottom Line
Don't let a monthly HOA fee kill a deal before you've looked at the full picture. In San Francisco, where well-maintained buildings in walkable neighborhoods hold their value, a thoughtfully managed HOA is often an asset. The goal is to understand what you're paying for — and make sure the building is run well.
When we're evaluating properties together, HOA financials are always part of the due diligence. It's one of the first things I pull.
